It's summer in Texas which means scorching hot weather. In 2018, it also means a hot housing market, especially for entry-level buyers trying to find an affordable home. That's the primary takeaway from the latest housing report issued by the Real Estate Center at Texas A&M University.
This is supported by several key indicators from the report. For example, the average days on market fell below 56 days for the first time since 2015, and urban areas continue to set the brisk sales pace, with Fort Worth, Dallas, Austin, and Houston ranging from 38 to 54 days on market.
But what's most concerning is that the inventory for homes priced below $200,000 continues to shrink. In 2011, those homes accounted for 72 percent of sales, but now they represent just 34 percent of sales.
The good news is that there are ways entry-level home buyers can compete and stay cool in this hot housing market. Down Payment Resource recently compiled six such ways. Here's a closer look at three we want to highlight.
- Get your down payment in order. We provide mortgage loans and down payment assistance grants through our home buyer programs. In addition to our programs, you can search for other assistance that may be available on Down Payment Resource's website. Home buyers that take advantage of down payment assistance can better compete in a tight housing market because the additional purchasing power allows them to expand their home search.
- Get your home buyer education. We require individuals using our home buyer programs to take a home buyer education class so they can understand what it takes to buy a home and successfully own it long term. We also created the Texas Financial Toolbox to allow individuals to find financial education and credit counseling organizations nearby that will help them achieve their financial and homeownership goals.
- Use technology to keep up with inventory. Technology has made today's home search easier than ever. Down Payment Resource recommends setting up search parameters and automated alerts through Zillow, Trulia, and Realtor.com. That way you will be the first to know about homes that meet your criteria and can strike quickly when they come on the market.
On the House blog posts are meant to provide general information on various housing-related issues, research and programs. We are not liable for any errors or inaccuracies in the information provided by blog sources. Furthermore, this blog is not legal advice and should not be used as a substitute for legal advice from a licensed professional attorney.